The plan would give Nebraska funding for expanded Medicaid obligations that McDaniel says would be paid for by taxpayers in Arkansas and other states.

In a letter to Senate Majority Leader Harry Reid and House Speaker Nancy Pelosi — McDaniel said he is NOT signing a letter by some attorneys general threatening a lawsuit. He says he doesn't believe such a lawsuit could be won at this time — but that he strongly agrees that the "Nebraska compromise" should be removed.

McDaniel says he agrees with Arizona Attorney General Terry Goddard's comment that the provision is a "sweetheart deal" for Nebraska and is not good public policy or in the nation's best interest.